-- RBC Capital Markets is maintaining its sector perform rating and US$9.00 price target on the shares of Bausch Health Companies' (BHC.TO) after the company reported upbeat first-quarter results.
Analyst David Miehm notes consolidated revenue and adjusted EBITDA beat consensus estimates by ~5%. "Higher-than-planned" residual volumes from several state Medicaid customers also benefited first quarter revenues, he adds, while Solta Medical revenue also rebounded strongly after a depressed fourth quarter.
Management reaffirmed 2026 Bausch Health's (RemainCo) guidance, which now includes the anticipated impact of the new tariffs on pharma products, which is expected to be effective late September. The company also reported that all remaining U.S. opt-out litigation payments (~US$158 million across legacy litigation) have been concluded, while RemainCo net debt fell by ~ US$113 million in the quarter.
Price: $8.45, Change: $+0.79, Percent Change: +10.31%